Kingfisher Airlines has got the Reserve Bank of
A loan of Rs 735 crore from UB Holdings, which is the parent company, to the airline, would also be converted into equity for which resolution was passed. The debt restructuring exercise is expected to take 1-2 months to complete, as banks will have to “get approval from their respective board”.
There will be an interest rate reduction to an average of 11 per cent, it will be a door-to-door tenure of nine years, with two years as moratorium and a seven-year easy repayment schedule.
The debt restructuring exercise also calls for Rs 900 crore of additional facilities to be provided by banks to the airline. It plans to raise funds of about $1 billion, including a $250-million GDR issue, which would be planned as soon as the debt restructuring exercise is finalised. The company is already meeting investors from the
